What is the overall financial performance of American Tower Corp. for the nine months ended September 30, 2001?

For the nine months ended September 30, 2001, American Tower Corp. saw a substantial increase in total revenues to $821.6 million, up from $491.5 million in the same period of 2000. This growth was fueled by strategic acquisitions and increased leasing activity. However, the company reported a net loss of $300.4 million, a significant increase from the $140.2 million loss in the prior year, primarily due to higher interest expenses and charges related to acquisitions and convertible note exchanges.

How did the company finance its growth and operations during this period?

American Tower Corp. utilized a combination of debt and equity financing to fund its aggressive acquisition and construction programs. For the nine months ended September 30, 2001, financing activities provided $1.4 billion, mainly from debt and equity offerings. As of September 30, 2001, the company had $3.5 billion in outstanding debt and approximately $330 million in available borrowing capacity under its credit facilities.

What is the significance of the announced restructuring plan?

American Tower Corp. announced a restructuring plan to reduce the scope of its tower development activities. The goal is to accelerate the return on investment and preserve capital. This initiative is expected to lead to a significant decrease in new tower construction and a more selective approach to acquisitions. The company anticipates recording a restructuring charge between $41.0 million and $44.0 million, which includes non-cash write-offs related to abandoned project sites.

What impact have acquisitions had on the company's financial results?

Acquisitions have been a primary driver of revenue growth, significantly increasing the company's portfolio of communication sites and expanding its service offerings. However, these acquisitions also contributed to increased operating expenses and interest expenses related to debt incurred for these transactions. The company recognized substantial goodwill and other intangible assets on its balance sheet as a result of these acquisitions.

AMT 10-Q Quarterly Report Q3 FY2001 — Revenue, Net Income, EPS

Summary

American Tower Corporation (AMT) reported a significant increase in revenues across all segments for the nine months ended September 30, 2001, compared to the same period in 2000. This growth was primarily driven by substantial acquisitions of communication sites and related businesses, as well as increased leasing activity on both new and existing towers. Despite revenue growth, the company continued to experience net losses, largely due to increased interest expenses and acquisition-related costs, including significant non-cash charges related to convertible note exchanges. The company has actively managed its liquidity and capital resources, undertaking significant debt and equity offerings in early 2001 to finance its aggressive acquisition and construction programs. A key development noted is the announced restructuring initiative to reduce the scope of tower development activities, aiming to accelerate return on investment and preserve capital, which is expected to result in a significant restructuring charge. Investors should note the company's substantial leverage and ongoing efforts to manage debt service obligations.

Key Highlights

1Total revenues increased by 67% to $821.6 million for the nine months ended September 30, 2001, compared to $491.5 million in the prior year, driven by acquisitions and increased leasing.
2The company experienced a net loss of $300.4 million for the nine months ended September 30, 2001, a significant increase from a net loss of $140.2 million in the same period of 2000, largely due to higher interest expenses and acquisition-related charges.
3Cash used for investing activities was $1.2 billion for the nine months ended September 30, 2001, primarily for acquisitions, though this was a decrease from $1.6 billion in the prior year.
4Financing activities provided $1.4 billion in cash for the nine months ended September 30, 2001, mainly from debt and equity offerings, though lower than the $1.8 billion in the prior year.
5Total debt outstanding as of September 30, 2001, was $3.5 billion, with the company having approximately $330 million of borrowings available under its credit facilities.
6A restructuring plan was announced to reduce the scope of tower development activities, which is expected to result in a restructuring charge of $41.0 million to $44.0 million.
7The company recorded a significant non-cash charge of $26.3 million in the third quarter of 2001 related to convertible note exchanges, representing the fair value of inducement shares.

AMERICAN TOWER CORP /MA/ Quarterly Report for Q3 Ended Sep 30, 2001

Summary

Key Highlights

Frequently Asked Questions